Getting an Income Tax Refund this year ? The Walton Financial Group in Barrie Ontario has some ideas as to the best ways to use it
The Walton Financial Group in Barrie Ontario is ready to provide financial advice about ways to leverage an income tax refund
The Canada Revenue Agency reports for 2 out of 3 people who have already filed their taxes , a refund is on the way
If you get a tax refund , there are ways to do things with your personal finances that have a lasting benefit. Here are some ideas:
- Add the money to the down payment for your next vehicle purchase: Financing a new vehicle these days is alarmingly expensive as a result of high interest rates and prices. The more you put down, the less you need to borrow.
- Add it to a child or grandchild’s registered education savings plan
- Add it to a first home savings account: The contribution will generate a tax refund for the current tax year, and you’ll benefit from tax-free compounding in the account. You can withdraw money from an FHSA tax-free as well.
- Add it to your registered retirement savings plan: Puts you on the path to another tax refund for the current tax year, plus you benefit from tax-free compounding in your RRSP over the years.
- Buy a one-year guaranteed investment certificate:. If you use a tax-free savings account, you can shelter your GIC interest from tax.
- Pay down debt: The interest rate on card debt is around 20 per cent and won’t budge when the Bank of Canada starts lowering rates later this year. A home equity line of credit typically has a rate around 7.7 per cent these days, which means expensive minimum monthly interest-only payments if you have a large balance.
- Start or build up an emergency fund: The latest numbers from the job market suggest some slippage, and that in turn raises the risk of layoffs and reduced hours of work.
Contact the Walton Financial Group in Barrie for more advice about ways to use an income tax refund into a positive moves for your personal finances
